China's favorite tipple falls flat on alcohol bans and Gen Z's changing tastes

Baijiu Blues: Tradition Faces a New Generation. Once a symbol of celebration and prestige, China’s iconic spirit, baijiu, now finds itself at a crossroads. Long poured at banquets and business dinners, this fiery liquor has been hit by a perfect storm: strict alcohol bans in official settings and the fast-shifting preferences of a younger generation. The effects are striking. Prices of premium baijiu brands have slumped to their lowest in a decade, and sales growth has slowed dramatically, reaching its weakest pace since 2016. What's behind this downward spiral? It starts in government offices and corporate circles, where official crackdowns on excessive drinking have sharply reduced demand. Lavish baijiu-fueled gatherings that once sealed deals or cemented relationships are being replaced with simpler, more sober affairs. But the real shake-up comes from China’s Gen Z. This generation is rewriting the rules of social drinking. Health, individuality, and global influences are shaping their choices. Instead of reaching for the traditional baijiu bottle, younger consumers are gravitating toward lighter, more fashionable beverages—think craft beers, cocktails, and even imported wines. They seek experiences, flavors, and stories that connect with their identities, rather than old customs and status symbols. This cultural shift poses a challenge to the baijiu industry, which has relied on heritage and ritual to maintain its dominance. The question now is whether this storied spirit can reinvent itself for a new era, or if it will remain a relic of China's past, cherished mainly by older generations. As Gen Z continues to reshape the landscape of taste and tradition, baijiu's future hangs in the balance, waiting for its next act.